£150bn of capital investment may be required to decarbonise road transport
A new Coalition for the Decarbonisation of Road Transport will bring together global experts in a bid to unlock private finance and accelerate the transition to zero-emission vehicles.
Analysis conducted by the Green Finance Institute has revealed that an estimated £150bn of gross capital investment may be required to decarbonise the UK road transport sector by 2030.
To help unlock this finance, the coalition will focus on developing finance solutions in three key areas:
- Consumer finance and leasing – financial investment is needed to help mitigate the upfront costs of electric vehicles (EVs) and accelerate the maturity of the used EV market.
- EV charging infrastructure – an estimated 6.7 million chargers will be needed to meet growing demand, the coalition has highlighted that public and private sector collaboration will be necessary to unlock the finance needed to achieve this.
- The commercialisation of battery technology – a capacity of up to 60 GWh P.a. may be needed by 2030, this will require at least three UK gigafactories and more than £5bn in investment.
Dr Rhian-Mari Thomas, chief executive of the Green Finance Institute, said, ‘The Green Finance Institute has already demonstrated the impact of bringing together experts to co-design innovative financial solutions and promote the enabling conditions needed to channel capital towards net-zero goals.
‘Identifying the most effective interventions and public investments in order to catalyse private sector finance requires thorough, detailed analysis as well as creativity and ingenuity. We’re excited to be working with KPMG and our founding coalition members to tackle the challenge of financing the decarbonisation of road transport.’
UK Transport Minister, Rachel Maclean, added: ‘As we accelerate towards a net-zero future, I’m delighted that government and industry are coming together to encourage more people to make the switch to zero-emission vehicles.’
Photo Credit – Pixabay
[…] source article: https://airqualitynews.com/2021/05/14/150bn-of-capital-investment-may-be-required-to-decarbonise-roa… Author: Pippa Neill Disclaimer: This article was not originally written by a member of the […]